Hello
I hear people speaking and trading options ATMF a lot. I am not in a trading position so wonder what do they mean. Precisely:
What is the significance of trading an option that is ATM forward? (Rather than ATM spot or any strike not even ATM?)
In what measure do people have in mind when they talk about the forward? (E.g. Under risk neutral measure I.e. K = spot * (rfr - 0.5*implied vol^2) ? )
Thanks